Dollar falls on uncertainty but ends week with modest gain

Dollar falls on uncertainty but ends week with modest gain

Still, a dip in the stock market is a long time coming, said Christine Armstrong, executive director at Morgan Stanley, as stocks break record after record.

In the latest shakeup, the White House said Trump on Friday fired chief strategist Steve Bannon, known as an economic nationalist and an advocate of "America First" policies. The dollar bounced back but failed to move higher against the yen or the euro and surrendered gains late in the day against the British pound.

Still, analysts said, the USA dollar was in an unenviable position, with inflammatory news headlines from the White House weighing on its already weak position.

The euro was last down 0.25 per cent against the U.S. dollar at US$1.1736. The selling eventually resumed in reaction to the attack in Barcelona and the major indexes finished sharply lower for the day.

US crude also lost 0.1 percent to $47.05 on Friday, surrendering some of Thursday's 0.7 percent gain, heading for a 3.6 percent weekly loss.

"We've seen some ups and downs", Doyle said, "but at the end of the week the dollar, for the most part, isn't much changed from where we started". The USD/CHF is also down about 0.08% and trading at 0.9618 Swiss Francs, off the session low of 0.96075 Swiss Francs. Strengthening in the domestic economy prompted the central bank to raise interest rates in July for the first time in almost seven years.

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The dollar index a measure of the USA currency against a basket of six trade-weighted major rivals rebounded to end at 93.42 against 93.10 last week. As such, there is a lot of faith riding on Cohn, and his departure would mark the complete opposite of what investors are looking for from the White House.

The Dow closed at 21,750.73, down 1.2 percent, while the Nasdaq fell 1.9 percent, to 6,221.91, and the S&P 500 dipped 1.5 percent, to 2,430.01.

"A 5 percent correction will occur in the market easily 10 or 15 times a year, (and) we haven't had one this year", Armstrong said. Moreover, Cohn appears to be a stabilizing force inside the administration, and has reportedly been one of the main counterbalances to some of the more protectionist camps inside the White House.

Dollar sales against the yen accelerated also because the Japanese currency increased its safe-haven appeal following the Barcelona attack, for which the Islamic State militant group has claimed responsibility.

Spot gold touched its highest since November 9 at $1,300.80 per ounce, and was up 0.03 percent at $1,287.95 an ounce by 3:20 p.m. EDT (1920 GMT).U.S. gold futures for December delivery settled at $1,291.60.

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